Senate Banking Committee Speeches
Wall street has had a dreary outlook lately. This lackluster performance comes form fears about the credit market, to rising energy costs, the FDIC’s list of troubled banks. The Federal reserve chairmen Ben Bernanke did not help the mode this morning at the Senate Banking Committee:
"The possibility of higher energy prices, tighter credit conditions, and a still-deeper contraction in housing markets all represent significant downside risks to the outlook for growth," Bernanke said in a speech to the Senate Banking Committee this morning. "At the same time, upside risks to the inflation outlook have intensified lately."
Inflation "seems likely to move temporarily higher in the near term," Bernanke said.
Bernanke also highlighted the problems in the financial markets, which he said remain under "considerable stress."
"Helping the financial markets to return to more normal functioning will continue to be a top priority of the Federal Reserve," Bernanke said.
This is not good news for an economy which is increasingly coming under pressure. Yesterday the FDIC added to its list of troubled banks and there has been a multitude of fear surrounding the collapse of the IndyMac Bank as well as many fears about the financial state of Fannie Mae and Freddie Mac. These are all issues that must be addressed or our economy is going to continue to worsen as time goes along. Many Americans are already feeling the crunch of the sagging economy and there seems to be no end in sight.
Since it does not appear we have any leadership in Washington either in any office or running for an office, then there does not seem to be a light at the end of the tunnel. As I type the markets are slumping with the Dow Jones off another 130 points today to go along with yesterday’s decline. Obama is giving a speech where he is talking about what we should have done and not what he plans to do. No leadership any where by anyone. No telling where we will end up next.
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